Spending Planner
Now you need to consider how much it would cost to borrow the sum of money you would require to fund your choices.
There are various lenders that you could approach:
Bank
loan
Your bank is willing to consider you for a loan. You have been a good customer for more than a year; you have a regular income and a good credit history.
12% APR
Bank
mortgage
If you are buying a property, you can apply for a mortgage. You have seen a mortgage deal for a repayment mortgage (where you pay back the capital loan amount and interest) at a five-year fixed rate, to be paid back over 25 years at 4.5% APR. You will need to have a deposit of 5-10% of the value of the loan.
4.5% APR
Finance
company
You're a home owner so the company is willing to consider loaning the money at 22.5% APR.
Credit
card
You could apply for a card with a rate of 18.9% APR. You will have a spending limit, and if you do not pay off your balance in full each month, you will be charged interest on the balance remaining on your account. Credit facilities are subject to status and are only available to persons over 18 years of age.
18.9% APR